"Adopted Child" Means "Legally Adopted Child" for the Purpose of Claiming Personal and Additional Exemptions

September 3, 1968 BIR RULING NO. 015-68 Mrs. Paulita Canlas Merida, Leyte M a d a m : This refers to your letter dated May 27, 1968 requesting information on a query stated as follows: "I am a widow without children of my own but have a seven year old natural adopted son and other kins living with me. My annual income as a public school teacher is three thousand sixty seven pesos (P3,067.00). "Please let me know whether my tax exemption of three thousand pesos (P3,000.00) which I enjoyed before, would be automatically changed to one thousand eight hundred pesos (P1,800.00) now that I am a widow. "Please let me know further if my adopted son (natural adoption) would also enjoy a tax exemption of one thousand (P1,000.00). "I wish to know too, if a taxpayer can file his income tax returns in any place he desires other than the place where he establishes residence." In reply, I have the honor to inform you that pursuant to Section 23(b) and (c) of the Tax Code, as amended, a widow with one or both parents, or one or more brothers or sisters, or one or more legitimate, recognized natural, or adopted children living with and dependent upon her for their chief support where such brothers, sisters or children are not more than 23 years of age, unmarried, and not gainfully employed or where such children are incapable of self-support because mentally or physically defective, can claim a personal exemption in the amount of P3,000.00 as "head of family" and the additional exemption of P1,000.00 for each of such children. Under your representations, however, you cannot claim the personal exemption of P3,000.00 as "head of family" because your "seven year old natural adopted son and other kins living with you" are not among those mentioned in Section 23(b) of the Tax Code as the dependents that would entitle you to such exemption. Neither can you claim additional exemption of P1,000.00 for your "seven year old natural adopted son". The term "adopted child" as used in Section 23(b) and (c) of the Tax Code, should be interpreted, for the purpose of claiming personal and additional exemptions to mean "legally adopted child". There must be a judicial order by a competent court adjudging that the child, for all intents and purposes of the law, is the child of the adopting parent or parents. Moreover, pursuant to Section 45(b) of the Tax Code as amplified by Revenue Memorandum Circular No. 19-66 dated April 11, 1966 an individual taxpayer should file his return with, and pay the income tax due from him, to the collection agent of the city or municipality where he legally resides, or, if engaged in business the collection agent of the city or municipality where the principal office of his business is located and where his books of accounts are kept. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue